It appears a combination of Stan Fischer’s ‘September is still on the table’ hawkishness (among others at Jackson Hole) and the “promise” once again that China will not intervene in the stock market anymore has taken all the exuberance out of last week’s epic short squeeze in US stocks. Dow futures have given all of Friday’s manipulation back and are trading back near Thursday’s JPM panic lows – down 220 from Friday’s close.

An ugly start to the week:

With some key Fib support being tested:

As The FT reports,

China’s government has decided to abandon attempts to boost the stock market through large-scale share purchases, and will instead intensify efforts to find and punish those suspected of “destabilising the market”, according to senior officials.

For two months, a “national team” of state-owned investment funds and institutions has collectively spent about $200 billion trying to prop up a market that is still down 37 per cent since its mid-June peak.

Traders and officials said the latest intervention was aimed at providing a “positive market environment” in preparation for a big military parade this week to celebrate the 70th anniversary of the “victory of the Chinese people’s war of resistance against Japanese aggression”.

Senior financial regulatory officials insist that this was an anomaly, and that the government will refrain from further large-scale buying of equities.

Finally, for a glimpse at where we might mean-revert to after the biggest 3-day short-squeeze since the bank bailout in Nov 2008…

We are gonna need another AAPL email, stat.